European unions protest EU Inc plan fearing race-to-bottom in wages and rights
Trade unions across Europe are set to rally outside the European Council as ministers discuss the ‘EU Inc’ regime, which they say could let companies shift registration to low-wage states and erode labour protections.
As European Council ministers convene to review the competitive regulation dubbed ‘EU Inc’, trade unions are preparing a large rally outside the venue. The European Trade Union Confederation, supported by Belgian unions Synova and the Confederation of Christian Trade Unions, expects to mobilise about 5,000 participants to demand safeguards for workers’ rights. The 28th Regime, originally intended to help small businesses expand across the single market, is being broadened to cover all EU-based enterprises, raising concerns that firms could simply re-register in countries with lower minimum wages and weaker collective bargaining.
ETUC’s general secretary Esther Lynch warned the measure could trigger a continent-wide race to the bottom in pay and conditions. An analysis by the European Trade Union Institute points to loopholes allowing companies to avoid worker consultation, shift headquarters without regard to employee location, replace wages with stock options, and fast-track liquidations that leave staff unpaid, all through a 48-hour online registration process.
Why it matters
The proposal could reshape labour standards across the EU, affecting millions of workers and competitive dynamics.
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